UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 14879 / April 16, 1996
SECURITIES AND EXCHANGE COMMISSION v. CRAIG I. DEITCHMAN,
individually and doing business as PLATINUM SECURITIES and
the PLATINUM GROUP, 96 Civ. 1792 (JBW) (E.D.N.Y.)
The Securities and Exchange Commission announced that it filed a
Complaint in the United States District Court for the Eastern
District of New York against Craig I. Deitchman ("Deitchman"),
individually and doing business as Platinum Securities and The
Platinum Group, alleging that Deitchman, a 28 year old resident
of Brooklyn, New York, fraudulently offered and sold securities
to his customers, misappropriated and diverted customer funds,
violated the penny stock rules, and did business as an
unregistered broker. In its Complaint, the Commission seeks a
permanent injunction against Deitchman, disgorgement plus
prejudgment interest, and civil penalties.
Simultaneously with the filing of the Complaint, the Commission
submitted Deitchman's consent to the entry of a final judgment
permanently enjoining him from future violations of Section 17(a)
of the Securities Act of 1933, and Sections 10(b), 15(a) and
15(g) of the Securities Exchange Act of 1934, and Rules 10b-5,
15g-2, 15g-3, 15g-4, 15g-6 and 15g-9 thereunder. The final
judgment also orders Deitchman to pay disgorgement plus
prejudgment interest thereon totaling $10,340.22, provided,
however, that such amount and any civil penalty, are waived based
upon his demonstrated inability to pay. Deitchman neither admits
nor denies the allegations in the Complaint.
The Commission thanks the National Association of Securities
Dealers, Inc. for its assistance in this matter.